In a response to a question from a Wall Street analyst, he said that franchising is definitely a more profitable way to grow. Though he said the company is exploring the option, he provided few details on how it might work instead saying only that we would not do that in a way that would impair the experience for our existing agents in any way.. Agents who speak different languages and can relate to diverse clientele will become increasingly important. There seems to be a problem with your Inman Select Membership. Get the week's leading headlines delivered straight to your inbox. Real estate is uniquely positioned to be a leader in diversity, Reffkin said in a recent Forbes guest post: Compasssaid the latest funding round will be used to expand to 10 new cities within two years and invest in new research and development. As of early afternoon Eastern Time, cofounder and CEO Robert Reffkin was worth more than $500 million, Forbes estimates. Reffkin, 41, owns 2.3% of Compass normal Class A stock and 100% of its Class C stock, which has 20 times the voting power of normal shares. We pored over its 261-page S-1 filing and came away with 5 key revelations. Robert Reffkin grew up the child of a hardworking single mother. Not everyone is convinced, but the firm said Wednesday that it isnow valued at $1.8 billion after its latest cash infusion a $100 million Series E round that will be spent on a geographic expansion. He then rose through the ranks at Goldman Sachs, eventually becoming the chief of staff for Gary Cohn, the former president and chief operating officer of Goldman. Reffkins mother raised him alone: He got a scholarship to a prestigious San Francisco prep school, graduated from Columbia University in two years, was hired as the youngest McKinsey analyst in the firms history, and eventually became chief of staff to Goldman Sachs COO Gary Cohn.. Doing things he's uncomfortable with is just part of his personality, though. Get the week's leading headlines delivered straight to your inbox. Emigrating from Israel at age 7, his mother Ruth Reffkin, after having her son, was disowned by her family after learning that their grandson was of African American descent. Fidelity bought in, making a rare bet on a private company. It employs more than 2,000 agents, who take a percentage of the selling price and gives 15 percentto 30 percentto Compass. The couple have three kids together. Don't miss the premier event for real estate pros. Prices are up in March over both February and January. Compass will have an international presence within 18 months, Reffkin said in June. Today, Reffkin lives in New York City with his wife, Benis Reffkin, who is a business and life coach. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Coalesce's Select Membership is no longer active. Attend Inman Connect Las Vegas to gain takeaways to achieve success in 2023. grow into the largest company of its kind, increased competition lately from companies, such as Side, Compass CEO Robert Reffkin calls home offices 'the killer of culture', Compass names Wendy Forsythe president of 3 western states, EXp cites 'volatile housing market' for double-digit sales decline in Q4, Compass revenue falls in Q4 but losses narrow despite 'difficult year', 'Trailblazer and icon': Real estate reacts to Sherry Chris' retirement, Inside the lavish world of luxury real estate and high-net-worth clients, Highlights from Sotheby's biggest brand networking event ever, Coldwell Banker Realty's new CEO: There's 'opportunity' in diversity, What to expect at Corcoran's conference in Nashville this week. Top editors give you the stories you want delivered right to your inbox each weekday. And thats not a surprise at Compass. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Last updated: Sep 27, 2022 5 min read Robert Reffkins story is about dreaming big, making an impact, and finding a place to call home. Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. Though a Compass franchise business would be a major shift for the brokerage, such a move isnt without precedent in the broader industry landscape. Meanwhile, others may be pushed back into the rental market for the time being. It looks like youre already a Select Member! For more details on our payment terms and how to cancel, click here. Compass CEO: Buyers will deal with higher rates. The Journey Was the Exciting Part | Columbia College Today Reffkins roughly 6% stake in Compass was valued at $472 million at the IPO price. Just last month, Oakland, Calif.-basedRoofstock, a platform for buying and selling rental properties, raised a $35 million Series C round.. Nine years after its founding, real estate brokerage Compass went public on Thursday, minting a huge windfall for the companys investors and employees. The CEO said some buyers especially those who can offer all cash will be able to snatch up a home this spring. Overnight on Wall Street is daytime in Asia. Robert Reffkin grew up in Berkeley, CA, with his mom, who is now a Compass agent. Only 3 days left to register for Inman Connect Las Vegas before prices go up! Reffkin said Compass website traffic increased 18 percent from the fourth quarter of 2022 to Q1 2023, and signals buyers growing commitment to navigating market challenges rather than waiting for a quote-unquote better time to buy. Unique features from hacker profiles to portal watch and video interviews. Reffkin made the comments during his companys earnings call. User promo code onward25 during checkout to save 25% on your Inman Select Membership. By submitting your email address, you agree to receive marketing emails from Inman. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. Backed by babysitting and bar mitzvah money, the young founder started a DJ company called "Rude Boy Productions" that brought in a total of $100,000 by the time he graduated from high school, the article said. Live market coverage co-anchored from Hong Kong and New York. In these times, double down on your skills, on your knowledge, on you. Founder & CEO of Compass. Its an industry that values longevity. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. The second is a 501c3 non-profit called America Needs You, which according to its website, "fights for economic mobility for ambitious, first-generation college students.". WebLine up and cue Bride, Groom and Wedding party for Grand Entrance. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. This includes building new technology including real estate signage fueled by solar power, a targeted digital marketing tool and a customer relationship management (CRM) platform. Amy Simply enter the email address you used to create your account and click "Reset Password". The 41-year-old cofounder and CEO has risen to prominence quickly. After graduation, Reffkin was an analyst at McKinsey & Co. for two years, then returned to Columbia for an M.B.A. He worked for two years in finance at Lazard, one as a White House Fellow in the U.S. Department of the Treasury and then moved back to New York City to work at Goldman Sachs. After covering the national trends, Reffkin acknowledged the impact of the markets greatest challenges is different from market to market, with pandemic boomtowns experiencing major busts in buyer demand and temporarily-abandoned urban markets experiencing stratospheric for-sale and rental price growth as employers reverse course on remote working. In September, U.K.-based Purplebricks another investor-backed, low-fee brokerage launched a U.S. operation after raising $60 million from investors. Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Prices for sales were down in March a little less than 1 percent year over year [and it was the] same in February; however, sequentially, prices are up. Its 2020 by 2020 plan, shared at a companywide meeting in New York on Oct. 24, means expansion to Seattle, San Diego, Phoenix, Dallas, Austin, Houston, Atlanta, Charlotte, Philadelphia and Chicago. Are you prioritizing your cable entertainment bill over protecting and investing in your family? Only 3 days left to register for Inman Connect Las Vegas before prices go up! If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. Forgot your username? as well as other partner offers and accept our. Today, Reffkin lives in New York City with his wife, Benis Reffkin, who is a business and life coach. He dubbed her the "most important person" in his life and an inspiration, in a LinkedIn post from Mother's Day 2019 that documented how she lived the American Dream. The couple have three kids together. The company says the technology will makereal-estate agents more productive and more profitable. Compass wants 20 percent of market share in 20 major U.S. cities by 2020. The new funding is a sign that Compass is headed for a public offering, The Real Deal reported. It was sleek, but I cant say it was different from anything else out there.. In 2005, he was a White House fellow under the George W. Bush administration, where he served as the special assistant to the Secretary of the Treasury,John Snow. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. The technology was mostly marketing tools, she said. During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust. Track your investments 24 hours a day, around the clock from around the world. In a LinkedIn post Thursday after his company went public on the New York Stock Exchange, Reffkin said, "I started Compass because of my mom, Ruth, a single mom who embodies the entrepreneurial spirit.". We would not franchise within the same geographies of our own operations, he added. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. Top headlines from around the real estate industry. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. At Compass' annual REtreat in Atlanta, CEO Robert Reffkin used his keynote to give an honest and intimate review of his company's post-IPO performance Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. Affordability is a real issue on the sales side, and if you combine that with a lack of inventory, its driving people to the rental market, he said. A tireless entrepreneur, she spent most of her career as a real estate agent. You will receive additional instructions via email. Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. WebCompass was founded by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as Urban Compass in 2012. Compass is gearing up for an ambitious $10 billion IPO. The sale was cut in half from the companys prior target as tech shares sank this week, and it priced at the low end of a reduced range with investor enthusiasm waning for high-flying startups that got a boost from Covid-related demand. Were the number one brokerage firm in the country, and we can see that buyers have accepted these mortgage rates as a new normal. If you have a three percent mortgage rate, you consider that a financial asset and you dont want to lose it.. A champion of diversity, Reffkin helped found a charter school in the Bronx and launched a nonprofit,New York Needs You, which finds mentors for students who are the first in their families to go to college. He dubbed her the "most important person" in his life and an inspiration, in a LinkedIn post from Mother's Day 2019 that documented how she lived the American Dream. He stands to receive another 14.9 million shares in coming years contingent on Subscribe to Inman Select for Breaking News and Exclusive Industry Content. Get your ticket now for the best price. Compass dashboard shows neighborhood real estate data and a Pinterest-like app for organizing home listings. Compass has persuaded investors that it can reshape the home-buying process through technology. (Courtesy Don't miss the premier event for real estate pros. The much-touted technology is, according to severalagents, not that different from what other brokers provide., Black Americans Have the Highest Mortality Rates But Lowest Levels of Life Insurance I think part of whats hitting the pandemic boom markets is CEOs across the country asking their employees to come back to work, he said. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. He was inspired to enter the world of real estate by his mother, Ruth, a longtime agent who now proudly works at Compass. WebAbout the Instructor As the CEO and founder of Compass, Robert Reffkin has used modern technology to revolutionize the real estate industry in the U.S. Now hes demystifying the ins and outs of the American home-buying process and sharing tools that will help you buy or sell a home with confidence. By clicking Sign up, you agree to receive marketing emails from Insider Real estate is the first career for just. In This Article. Read more: Compass is gearing up for an ambitious $10 billion IPO. Reffkins stake valued at $472 million after share sale, Critics say real estate brokerage needs to justify valuation, Rivians Troubles Dont End at a 93% Wipeout, Buffett Will Beat theMarket asRecession Looms, Investors Say, First Republics Jumbo Mortgages Brought On Banks Failure, Asia Stocks Set for Mixed Start as Treasuries Drop: Markets Wrap. Please update your billing information to reactivate your membership. Not so much, During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust, What you need to know to start your day with all the latest industry developments. U.S. Federal Reserves Board of Governors. Compass recruited her with promises of transformative technology and generous commissions, Bloomberg reported. Since his mother never married his biological father, his mother gave Reffki Leading commentary by award-winning journalists. From growing up in Berkeley, CA with a single mom, to becoming a White House fellow and rising through the ranks at Goldman Sachs before launching Compass, here are some things to know about the up-and-coming executive. Learn more about Robert's entrepreneurial pursuits and insights into the Get your ticket now for the best price. He is running 50 marathons to raise $1 million for youth education nonprofits. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. You will receive additional instructions via email. Compass has persuaded investors that it can reshape the home-buying process through technology. The markets that are being hit most in terms of price are the pandemic boom markets, he said. The real estate industry values a diverse skillset in its practitioners. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Founder & CEO Robert Reffkin started Compass in 2012 Compass In my continuing coverage of the countrys real estate market, I reached out to Compass Reffkin grew up in Berkeley, Calif., as an only child. His mother, Ruth, emigrated from Israel with her family when she was 7, but became estranged from her parents in adulthood. Reffkins father was absent from his life, too, having passed away when Reffkin was 11. I didnt have a dad, grandparents or anyone other than my mom. Reffkin left his banking career to start up Compass with the tech entrepreneur Ori Allon. Access your favorite topics in a personalized feed while you're on the go. Governor, Maryland. All Rights Reserved. You will be charged . One is Success Academy Charter Schools, a school system for low-income Black and Hispanic students in New York City that helps diminish educational disparities. During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust. Those close to him have said he has talked about someday running for public office, such as mayor of New York City. 15 stories covering tech, special reports, video and opinion. Reffkin also didnt say when Compass might begin franchising, or which markets could be the first to see such an option roll out. Your subscription will automatically renew for on . In a surprise twist, Compass CEO Robert Reffkin revealed Tuesday that his company is exploring the possibility of franchising as it works toward profitability. Subscribe to Inman Select for Breaking News and Exclusive Industry Content. CEO Robert Reffkin floated the idea of a franchise brand during an earnings call Tuesday, describing it as a 'more profitable' method of growing the business. Reffkin is African American and Jewish and grew up in Berkeley, California. Forgot your username? Reffkin then referenced a recent Redfin report about pandemic boomtowns and repeated the story of a Boise-based Redfin agent who noted a precipitous drop in homebuying demand after Silicon Valley Banks March failure. Sign up for Individual Select membership today. The buying power of the LGBTQ community is growing. Thank you for subscribing to Morning Headlines. With all that capital raised, all signs are pointing to that direction, said Ashkan Zandieh, founder of property data startup Falkon and research company RE:Tech., Vera Nelson,a California real-estate agentof 17 years, left Coldwell Banker for Compass in 2015. Back in 2020, for instance, Chicago-based brokerage @properties launched its own franchise brand. Agents see a 25 percent increase in earnings during their first year, Compass has said. Markets never sleep, and neither does Bloomberg. At best, agents who wanted more control could form teams, but they couldnt actually own their own businesses in the same way a franchisee at another company might. Self-made millionaire and Compass CEO Robert Reffkin uses simple tests when making decisions about who to hire and who to let go during job interviews. Thursday appearance on CNBCs Squawk on the Street,, market back in line with historical norms, havent been able to make that same mental shift, stratospheric for-sale and rental price growth, asking their employees to come back to work, Compass CEO Robert Reffkin calls home offices 'the killer of culture', Real estate leaders see signs of market thawing, NYC rent soars to all-time high and it's not done yet, analysts warn, The Great Reshuffling is more complex than we realized, Troubled real estate eyed as JP Morgan takes over First Republic, 'Trailblazer and icon': Real estate reacts to Sherry Chris' retirement, What agents need to know as the complex mortgage fee hike kicks in, Totally not tech-savvy? Nobody wants to give up their home in which they locked in [lower rates] years ago., The fundamental issue is that 30 percent of homeowners are locked in mortgage rates at three percent or below, he added. Theres a lot of pent-up demand.. The 5-year-old company reported $62.6 million in 2017 revenue. During his Thursday appearance on CNBCs Squawk on the Street, Compass CEO Robert Reffkin gave a cautiously optimistic assessment of the real estate market as the industry continues to wade through inflation, rising mortgage rates, and the return to a more normal sales pace. Reffkin graduated from Columbia University in just under two years, according to Fortune, which placed him on the 40 under 40 list in 2014. As of Although existing-home sales and median home prices experienced single-digit declines in March, Reffkin said affordability continues to be an issue as homebuyers attempt to solve the age-old debate between buying and renting. Redfin another venture-backed tech brokerage isnow worth $2.05 billion following its successful public offering. 11 tools for neophytes, 23 video content ideas real estate agents can't afford to miss, New-home sales soar to 1-year high in March as purchases leap 9.6%. NYC-based firms raised close to $900 million during the same period, up from $300 million last year, The Real Deal reported: A few weeks after Redfins IPO, San Francisco-basedHomelight, which uses data to connect buyers with agents, raised $40 million in a Series B led by Menlo Ventures. Robert Reffkin (1979- ) Online real estate entrepreneur Robert Reffkin was born June 7, 1979, in Berkeley, California. Compass, the tech-focused brokerage that Reffkin co-founded in 2012, raised $450 million in an initial public offering Wednesday. California-based luxury brokerage The Agency also runs a franchise business. But it was a real estate startup that vaulted him to the ranks of the ultrarich. Thank you for subscribing to Morning Headlines. Still, even with sparse details, the news is a major announcement. Reffkin took Compass public Thursday, making him one of just 8 Black billionaires in the US. Sellers? Leading commentary by award-winning journalists. A Compass foray into franchising would upend the status quo, potentially allowing the company to expand its brand more quickly and nimbly. Nelson left less than a year later and returned to Coldwell. As Robert and Greg mentioned, we intend to bring down our non-GAAP operating expenses after commissions and other expenses to $1.05 billion to $1.15 billion as we exit 2022. Today, the firm has franchises spread out across multiple U.S. regions. By submitting your email address, you agree to receive marketing emails from Inman. His mother was Israeli and his father was In these times, double down on your skills, on your knowledge, on you. There seems to be a problem with your Inman Select Membership. User promo code onward25 during checkout to save 25% on your Inman Select Membership. Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. The round brings Compass total funding to $325 million, according to The Real Deal. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. He then became the youngest business analyst ever hired at McKinsey & Company where he spent two years before returning to his alma mater to get his MBA and then going back to Wall Street as an associate at Lazard. Compass Inc. Chief Executive Officer Robert Reffkin started his career working in the inner sanctums of American power, from McKinsey & Co. to the White House to Goldman Sachs Group Inc. You will be charged . However, would-be homesellers havent been able to make that same mental shift. Please update your billing information to reactivate your membership. Compass explores possibility of franchising, company says, CEO Robert Reffkin floated the idea of a franchise brand during an earnings call Tuesday, describing it as a 'more profitable' method of growing the business, What you need to know to start your day with all the latest industry developments. Wes Moore. Robert Reffkin at Inman Connect. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. Whatever happens at Compass, the news of possible franchise operations comes as the brokerage scrambles for profitability. In addition to being the leader of Robert Reffkin is also Compass founder. His "primary philanthropic undertaking" has been running a marathon in each of the 50 states in the US to raise $1 million for youth education and enrichment programs, he said in a bio on America Needs You. One person said he's lacked experience in almost everything he's ever done but that's part of what makes him an "extraordinary person. Your subscription will automatically renew for on . Though he founded two philanthropic organizations, Reffkin's generosity doesn't end there. As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. We pored over its 261-page S-1 filing and came away with 5 key revelations. Attend Inman Connect Las Vegas to gain takeaways to achieve success in 2023. Robert Reffkin. I think people have realized is not about productivity, its about connectivity, and leaders have an obligation to develop their people and its harder to develop people virtually than in person.. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. Inman has reached out to Compass for more details and will update this story with any information the company provides. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. Investors in the funding round included Fidelity Investments, IVP and Wellington Management, which led Compass Series D round. He's always had big ambitions for his career, sources told Insider previously. After graduating in two years from Columbia, he began his career on Wall Street. Investors seem bullish on real estate technology, spendingalmost $6 billionon it in the first three quarters of 2017, compared to $3.2 billion during the same period in 2016, according to RE:Tech data. Rents are actually flat year over year.. Breaking news as it happens. It would also make Compass look more like its older rivals; firms, such as RE/MAX and brands under parent company Anywhere have long operated franchises. CEO Robert Reffkin floated the idea of a franchise brand during an earnings call Tuesday, describing it as a more profitable method of growing the business. Sign up for notifications from Insider! Immigrants are an important and growing client base. But he left the storied Wall Street firm in 2012 to start his company. Reffkin said during Tuesdays earnings call that he expects to be free cash flow positive in the second quarter of 2023, and overall for the year, and that he is prepared to do more cost cutting if necessary. Robert Reffkin wants Compass to be the Amazon of real estate The Compass CEO shared insight into his company's approach to technology and why WebNov 09, 2017. Reffkin grew up in Berkeley, CA, as an only child with a single mom, who is now a real estate agent for Compass. To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. 15 stories covering tech, special reports, video and opinion. But sources told Insider previously he didn't actually know much about the industry he was trying to disrupt, saying he had a rudimentary knowledge and didn't know the difference between a co-op and an apartment. WebNotable White House Fellows. WebMayor Michael R. Bloomberg today appointed Robert Reffkin to the Panel for Educational Policy, replacing Chairman David Chang who resigned from the Panel on Friday, November 5th, 2010. Assist Band or DJ in cueing important events (ie grand entrance, cake cutting, bouquet toss, dance, etc.) How Robert Reffkin went from being a C-average student to the Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. It lures the industrys top talent with lavish signing bonuses and specializesin high-margin, luxury homes in upscale, coastal markets. Coalesce's Select Membership is no longer active. He has said he hopes one day to run for office. Reffkin was ultimately upbeat about Compass prospects, but in his companys earnings report also described 2022 as one of the worst years for the real estate market.. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. It looks like youre already a Select Member! Bloomberg Daybreak Asia. Breaking news as it happens. The 41-year-old cofounder Simply enter the email address you used to create your account and click "Reset Password". Inventory exiting Q1 was nine percent less than it was exiting Q4, he said. Robert Reffkin and his mother Ruth Reffkin at a marathon in New Mexico. Some of the most talented and successful agents Ive met are those whove seen the industry through multiple housing downturns and can leverage that experience, Reffkin wrote. For more details on our payment terms and how to cancel, click here. Lael Brainard. Smart Policies are as low as $30 a month, No Medical Exam Required 62 percent of Realtors nationwide are female. Stay up to date with what you want to know. Robert Reffkin is the founder and CEO of Compass, a real estate company, and an entrepreneur on a mission to help everyone find their place in the world. Compass has also faced increased competition lately from companies, such as Side which provide back-office support for agents who want to operate their own brands.
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